Delivering Support For Post Offices

10th June 2010

Consultation to be launched on new Challenge Fund

Scotland's local post offices will soon be able to apply for support from the Scottish Government's new one million pounds Challenge Fund.

The scheme is being launched to help local post offices diversify with new business activities and become increasingly sustainable.

Applications for awards ranging from 2,500 pounds to 25,000 pounds will be sought over the summer, following a short Scottish Government consultation which starts today.

Enterprise Minister Jim Mather said: "Scotland's post offices play a very important part in community life, providing services which many families and local businesses depend on.

"In our budget for this year, the Scottish Government decided to prioritise economic recovery and, recognising the significance of our post office network, acted to set up a new one million pounds Challenge Fund.

"We want to see applications from post offices focused on diversifying their business. Our priority is to direct funding to help SubPostmasters develop their enterprise, identifying opportunities for new revenue streams such as retailing, selling different goods, or providing a business service not already available in their locality.

"This initiative builds on our comprehensive support for small firms in Scotland. Through measures such as the Small Business Bonus Scheme, we are helping to strengthen small firms, enabling them to go from strength to strength at the heart of local economies in Scotland."

George Thomson, General Secretary of the National Federation of SubPostmasters, said: "We welcome the introduction of the Challenge Fund as a positive and important step in supporting post offices across Scotland. The Fund recognises that for rural and urban communities alike, post offices are vitally important.

"The NFSP is keen to work with the Scottish Government to support this programme, which we hope will lead to further initiatives to secure the viability of our post offices for the future."

Paula Vennells, Chief Operating Officer for the Post Office, said: "Post Office Ltd is delighted that the Scottish Government is supporting SubPostmasters through this one million pounds fund. The fund will help SubPostmasters to diversify and build footfall in their retail businesses, which in turn will support Post Office services, recognised by their customers as so vital to each community."

In February 2010 the Cabinet Secretary for Finance and Sustainable Growth announced the deployment of one million pounds in 2010-11 to establish a Post Office diversification scheme which would help sustain and develop businesses which are built around post offices, given their vital role in communities and local economies. While the Post Office and postal services are reserved to the UK Government under the Scotland Act 1998, the Scottish Government is committed to strengthening the long-term sustainability of the Post Office network in Scotland.

The fund is being introduced as a result of growing cross party consensus in Parliament for such a scheme.

A consultation launched today sets out proposals about the type of support and outcomes that the new fund could provide. It has been developed following meetings with key stakeholders. The consultation, which runs until July 9, can be viewed at http://www.scotland.gov.uk/Topics/Business-Industry/support

It is anticipated that application forms will be published on July 21, with a deadline for completed applications in the Autumn.